collapse because of lack of Opposition support, The Royal Gazette can reveal.

The Prohibited Restaurants Act 1996 passed the House of Assembly for the second time in December last year by 23-16 after the Progressive Labour Party voted with five United Bermuda Party rebels to crush Sir John Swan's bid to bring a McDonald's burger restaurant to Bermuda.

But yesterday there were signs that the PLP position was set to change -- leaving the so-called People's Five without the needed support to force the bill through.

The bill -- which failed to pass the Senate after its first reading in the House -- is scheduled to have its third reading in June.

Senate can only delay legislation for a year, so if the bill passed its third reading it would bypass the Senate.

Acting PLP leader Eugene Cox was last night playing the party's cards close to his chest.

But he said: "A lot could happen by then -- we will certainly be looking at all of the angles.

"We will be focusing on what is in the best interests of the Country, but I wouldn't say what we would do specifically.'' He said the PLP had not imposed a three-line whip on the issue, although all the PLP MPs voted with the rebels.

During the original debate on the issue, some PLP MPs appeared to argue in favour of franchises in Bermuda, including Dr. Ewart Brown and Renee Webb.

Dr. Brown said last night: "To the extent that circumstances could have changed by that time, I'm sure that we are open to reconsideration.'' And he added: "I take the position that franchises may be one of the few methods for the creation of new wealth in Bermuda, simply because the amount of capital required is usually somewhat less.

"It's encouraging to entrepreneurs who don't come to the table with buckets of money -- unless we do that, it's going to be the same people all the time.'' Ms Webb said that her recollection was that MPs had to toe the party line in the original vote.

She added: "If there had been a free vote, I would never have voted the way I did. I don't believe in restricting business which will create opportunities for people who have never had the chance to get into business.'' A storm of protest erupted after Grape Bay Ltd., which includes Sir John and UBP backbencher Maxwell Burgess among its principals, was granted permission in February last year to operate a McDonald's restaurant.

But in June, Government suffered an embarrassing blow when the rebel five -- Ann Cartwright DeCouto, Trevor Moniz, C.V. (Jim) Woolridge, Dr. Clarence Terceira and Dr. David Dyer -- united with the PLP in June to force through a bill making any franchise opened after May 10 illegal.

The bill, however, stalled in the Senate, although the rebels vowed to introduce it again -- which they did in December last year.